Brown Shoe, Urban Outfitters, Royal Caribbean Cruises, Bemis and Carnival highlighted as Zacks Bull and Bear of the Day
CHICAGO, Dec. 4, 2014 /PRNewswire/ -- Zacks Equity Research highlights Brown Shoe Company (NYSE:BWS-Free Report) as the Bull of the Day and Urban Outfitters, Inc. (Nasdaq:URBN-Free Report)as the Bear of the Day. In addition, Zacks Equity Research provides analysis onRoyal Caribbean Cruises Ltd. (NYSE:RCL-Free Report), Bemis Company, Inc. (NYSE:BMS-Free Report) and Carnival Corp. (NYSE:CCL-Free Report).
Here is a synopsis of all five stocks:
Brown Shoe Company (NYSE:BWS-Free Report) is cashing in on demand for new shoes as it handily beat the Zacks Consensus in the third quarter. This Zacks Rank #1 (Strong Buy) also raised full year guidance.
Brown Shoe Company is a global footwear company that owns numerous well-known brands including Dr. Scholl's, LifeStride, Sam Edelman, Franco Sarto, Vince, Via Spiga. It also operates over 1200 Famous Footwear and Naturalizer stores.
On Nov 25, Brown Shoe reported its third quarter results and blew by the Zacks Consensus by 7 cents. Earnings were $0.75 compared to the Zacks Consensus of just $0.57.
It has put together a solid string of beats. Brown Shoe hasn't missed since early 2012.
The strongest area was wholesale, which was up 18.2% in the quarter, boosted by its Healthy Living and Contemporary Fashion brands which include Dr. Scholl's and Via Spiga.
Urban Outfitters, Inc. (Nasdaq:URBN-Free Report) continues to struggle as its flagship brand, Urban Outfitters, flounders in the tough teen and young adult segment of the retail market. Will this Zacks Rank #5 (Strong Sell) be able to turn around the Urban brand?
Urban Outfitters operates 236 Urban Outfitters stores, 199 Anthropologies stores and 102 Free People stores in the United States, Canada and Europe selling apparel, accessories, shoes and home furnishings. Free People also sells its products to about 1400 specialty stores and department stores.
It also operates 7 Anthropologie wedding dress stores under the brand BHLDN in the United States. All of its brands sell online as well.
On Nov 17, the company reported its third quarter results and missed on the Zacks Consensus by $0.07. Earnings were $0.35 compared to the consensus of $0.42.
Net comparable store sales fell 1% but each brand performed differently.
Additional content:
Royal Caribbean to Replace Bemis on S&P 500
Share price of Royal Caribbean Cruises Ltd. (NYSE:RCL-Free Report) increased 6% on Dec 2, 2014 after it was announced that this leading cruise operator will join the S&P 500 Index. The company will replace Bemis Company, Inc. (NYSE:BMS-Free Report) – a packaging products company on the large-cap S&P 500 Index after the closing bell on Thursday, Dec 4, 2014. Bemis will in turn join the S&P MidCap 400 Index.
The S&P 500 is one of the most commonly used benchmarks for the overall U.S. stock market. To be added to the S&P 500 list, a company should have a market capitalization greater than $5 billion. As of Dec 1, 2014, Royal Caribbean's market capitalization was $16.4 billion.
Royal Caribbean now joins another leading cruise operator Carnival Corp. (NYSE:CCL-Free Report) in the hotels, resorts and cruise lines segment of the S&P 500 Index. We believe that the news cheered traders, thereby leading to the positive movement in share price. In fact, year to date, Royal Caribbean's shares have soared 65% to $76.75.
With the exception of the Mar 2014 quarter, the company has recorded consistent improvements in earnings and revenue growth since the beginning of 2013 on the back of its continued efforts.
The company is pursuing profitability improvement initiatives aimed at generating long-term cost savings. These initiatives include the consolidation of the majority of the call centers and establishment of marketing and revenue management teams in fast growing markets.
As a part of this initiative, the company has also divested its Pullmantur brands' non-core businesses and now intends to focus on the cruise business. Also, the company is working on the Double-Double program that aims to double 2014 earnings per share by 2017 by optimizing revenues, controlling costs and moderate growth.
Also, Royal Caribbean has been successful in dealing with the volatility in fuel prices driven by its environmental efforts.
Royal Caribbean that currently has a Zacks Rank #3 (Hold) serves more than 4 million passengers annually. Given the strength and diversity of its brands and itineraries, the company has successfully captured potential and repeat cruise vacationers. With back-to-back strong booking trends, we expect the company to continue to deliver solid results.
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